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  India   All India  28 Jun 2018  Government clears funds to boost exports

Government clears funds to boost exports

THE ASIAN AGE.
Published : Jun 28, 2018, 2:50 am IST
Updated : Jun 28, 2018, 2:50 am IST

Funds to ECGC would be infused in the three financial years — Rs 50 crore in 2017-18, Rs 1,450 crore in 2018-19 and Rs 500 crore for 2019-20.

Covers from the corporation will help in improving competitive position of India exporters in international markets.
 Covers from the corporation will help in improving competitive position of India exporters in international markets.

New Delhi: Keen to push exports, the Centre on Wednesday approved capital infusion of Rs 2,000 crore to Export Credit Guarantee Corporation (ECGC) to enhance insurance coverage to micro, small medium enterprises exports.

The Union Cabinet, which met during the day, also approved contribution of grant-in-aid (corpus) of Rs 1,040 crore to National Export Insurance Account Trust (NEIA) to promote project exports.

Funds to ECGC would be infused in the three financial years — Rs 50 crore in 2017-18, Rs 1,450 crore in 2018-19 and Rs 500 crore for 2019-20.

“The infusion would enhance insurance coverage to MSME exports and strengthen India's exports to emerging and challenging markets like Africa, CIS (Commonwealth of Independent States) and Latin American countries,” an official statement said.

It said that with enhanced capital, ECGC's underwriting capacity and risk to capital ratio will improve considerably.

“With a stronger underwriting capacity, ECGC will be in a better position to support Indian exporters to tap new and unexplored markets. Increased capital infusion will help ECGC to diversify its product portfolio and provide cost effective credit insurance helping exporters to gain a stronger foothold in the difficult markets,” it added.

Covers from the corporation will help in improving competitive position of India exporters in international markets.

“More than 85 per cent of customers benefitted by ECGC's covers are MSMEs. ECGC covers exports to around 200 countries in the world,” it added.

ECGC offers credit insurance schemes to exporters to protect them against losses due to non-payment of export dues by overseas buyers due to political and/or commercial risks. Further to promote project exports from the country, the government has approved additional grant to NEIA. India's exports grew by 9.78 per cent to $302.84 billion in 2017-18.

Tags: export credit guarantee corporation, neia